Streamlining M&A Deal

THE CHALLENGE

International payee management and compliance risk

Due diligence burden: KYC (Know Your Customer) of all the payees compliance was a non-billable task for the legal firm and would have been exceptionally time-consuming given the complexity of the deal.
Risk in payment handling: Managing payments to 406 payees was a significant risk, requiring reliance on in-house client account functions and finance teams, which involved highly manual and long drawn-out processes.
FX challenges: The law firm lacked foreign exchange capabilities, making currency conversion for international payees highly costly and complex.

THE SOLUTION

Payee outreach: Shieldpay initiated communication with payees to explain the process and the required actions from all stakeholders, effectively managing a high volume of correspondence to coordinate transactions involving hundreds of parties.
Efficient data collection: Required personal data from stakeholders was collected through online forms, ensuring ease and convenience, with all data stored in a centralised location. Leveraging Shieldpay's Verify offering, all KYC checks for the 406 contracted payees were conducted by Shieldpay.
Funds management: The payments provider received funds from three different parties and disbursed the funds to all payees within a specified timeframe.
Currency choice: Payees were offered the option to receive payout in their preferred currencies, thanks to a strong partnership with an FX provider offering highly competitive FX rates.

THE OUTCOME

Time and cost savings: The law firm saved hundreds of hours of administrative time, allowing its legal teams to focus on higher-value, billable legal work.
Enhanced communication: Shieldpay created a dedicated channel for handling payee inquiries to streamlined the process. This supported the law firm's efficiency and provided a more responsive and centralised communication platform, ultimately enhancing the client experience.
Streamlined payment journey: By partnering with a technology-enabled solution, the client benefited from a streamlined payment process, reducing the complexities associated with a large, multi-currency transaction.
Efficient payout: The deal's payout was seamless and fast, despite its complexity, ensuring that all parties received their funds within the agreed-upon timeframe.